RISK MANAGEMENT IN THE NIGERIAN FINANCIAL INSTITUTION

ABSTRACT

The aim of this study was to examine the impact of risk management in the banking sector of the Nigeria financial institutions. The study started with an attempt to state the problem that motivated the study, which financial institutions  Risk management was into the banking sector to help recluse the risk of systematic failure and avoid the disruptions caused by the financial crises in banks. The study there for, was done to access critically its impacts on Nigeria financial institution  The method for data collection was by questionnaire, we also made use of primary and secondary data fifty one questionnaires were administered, forty two were property tested with the use of chi –square (x2) statistical tool and the entire three nall hypothesis were rejected. We could conclude there fore, that there is a positive relationship between risk management and the dependent variable, namely prudential banking credit portfolio of banks and banks liquidity.  The feelings indicated that financial institutions eg. Banks now take minimized and calculated financial risks as a result of the impact of risk management  And it also medicated that confidence and stability have been restored in the banking sections as a result of the strict risk management regulations  The following recommendations among others were made that the center bank of Nigeria (CBN) need to ensure regular examination of banks so that problem of systematic financial risk could be detected early before the situations gets out of hands Banks and other financial institution should as much as possible, employ qualified risk managers and staffs. Banking edacities is the aspect of risk management should be encouraged.